7 Ways to Generate Passive Income
We’re two months into a new year, and there’s still time to put a plan in motion to bring in extra income in 2017. Before you roll your eyes and think that means taking on a late-night gig at the coffee shop, relax.
The two following words will make your life much easier: passive income.
Passive income is that term we thought only billionaires used. You know, “I make money in my sleep!” Well, in this day in age of opportunity and side hustles, you can earn cash during your bedtime slumber just the same. Passive income is where you invest your time upfront setting up a plan that will earn money as time goes on – even when you are not physically working.
Reality check: Like with anything in life, you have to be willing to work hard and follow through. Once your passive income streams are up and running, you can’t just sit back. Think of them as plants that need vitamins – and constant nurturing. It’s still work, but can be exciting and profitable!
Here are some ideas to bring passive income into your bank account while you sleep, play, eat or work your main job!
1 – Digital downloads:
If you are a creative, you can take this in so many directions! The concept is to open an online shop where you can sell PDFs of your choice. Use a graphic editing program to create art that people can buy and download to be framed. Maybe skip the art and go for lesson plans for teachers, or templates for a small business press kit, cupcake toppers for birthday celebrations. You would design the items, upload them to your shop, promote them far and wide, then smile every time you make a sale. Nothing to ship or pack! The buyer simply pays for the item then receive the link to download the article.
2 – Write an eBook:
You know that family cookbook you’ve dreamed of publishing? Do it yourself! Maybe it’s creating a guide to video games or a juicy romance novel. With the help of YouTube tutorials, you can learn how to use a variety of free platforms to format, price, and promote it. Then, upload it to online booksellers.
3 – Cash-back programs:
Cash-back programs won’t exactly pay for an exotic vacation, but maybe some cute outfits. Whether it’s a personal credit card or an online shopping site, you can actually earn a kick back from your purchases. Check with your bank to find out if your card qualifies, and check out sites like eBates for shopping. You can find many retailers where you can register on their site, shop and receive a percentage of the sale.
4 – Affiliate programs:
If you have a blog or website where you share all your favorite shopping, cooking or craft finds, make sure to sign up for Amazon Affiliates, ShareASale, rewardStyle, and others. You can choose from all kinds of ads for products that you know will appeal to your audience. Once they click and start shopping, you’ll earn a percentage of whatever they buy.
5 – Offer online classes:
But what will you teach? Whatever you’re great at doing or making! From cake decorating classes to brush lettering or from teaching Photoshop to business tips – there is a class out there for everything! Why not step into that space with your skills! The great part is once you film, edit and post the video, you can set up an online payment system so people can purchase and take your class any time of the day or night.
6 – Rent out extra space or services:
Do you have an extra room in your house, or maybe a back house or apartment? Check out sites like airbnb to rent it out.
7 – Buy a vending machine:
Snacks, toys, office supplies, coffee… There are many types of vending machines that offer the opportunity for generating passive income. It’s like a physical store without an employee. It will have an initial investment upfront in time and money, but if strategized creatively, it can certainly add to your wallet.
If a stay-at-home mom earned a salary, what would it be? Learn more about how much mom is worth at H&R Block.
Does receiving unemployment benefits affect your refund and is it taxable income? Learn more from the tax experts at H&R Block.
Uber and Lyft drivers must file self-employment income taxes. Learn more with the tax experts at H&R Block.